Shares of this cable and wire manufacturing company are gaining momentum on July 1
Decline in the commodity prices is helping KEI industries to gain in today’s session.
At 12:15 pm, the shares of KEI Industries Ltd are trading 4.1% up at Rs 1198.95.
The market is trading in green today. However, shares of KEI industries are trading with strong momentum upwards. The shares are trading in green today after 5 consecutive red days. The stock has recovered all its last 5 days’ losses. This is due to a decline in the commodity prices which are the main raw materials for cable manufacturing. KEI industries one of the cable players in India can benefit.
The company is involved in the business of manufacturing cables and wires with different portfolio products varying from wires used in homes to the EHV (Extra High Voltage) cables and providing EPC (Engineering, Procurement, and Construction) services for transmission & power projects. The company has a 5.2% share in the total cable business in India.
The financials of the company are strong. The latest Q4 revenue was reported at Rs 156 crore, a 38% YOY growth. Talking about long-term records, the company has showcased a robust net profit growth of 32% CAGR over the last 5 years. The company has also a great ROE and ROCE ratio of 19.2% and 24%, respectively as per the March FY22 period ending.
The management shared their commentary on expected revenue growth of 17% to 18% CAGR for the company for the next 2-3 years. The management is also expecting an operating margin and PAT margin of 11% and 6.5%, respectively for FY23. The company is focused on increasing its market share in the wire business and expanding its retail business across different regions.
The company belongs to S&P BSE group A and has a market capitalization of Rs 10,818 crore. The shares of the company are trading at a PE of 28.7x. The shares of the company have a 52-week high and low of Rs 1376.75 and Rs 690, respectively.
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